As Middle Eastern markets navigate mixed outcomes amid ongoing tariff concerns and economic uncertainties, investors are closely watching regional indices for signs of stability. In such a fluctuating environment, dividend stocks can offer a measure of reliability and income potential, making them an attractive option for those seeking steady returns amidst market volatility.
Top 10 Dividend Stocks In The Middle East
Name
Dividend Yield
Dividend Rating
Emaar Properties PJSC (DFM:EMAAR)
8.23%
★★★★★☆
National Bank of Ras Al-Khaimah (P.S.C.) (ADX:RAKBANK)
7.85%
★★★★★☆
Anadolu Hayat Emeklilik Anonim Sirketi (IBSE:ANHYT)
Overview: Agthia Group PJSC operates in the food and beverage industry, producing and selling its products both in the United Arab Emirates and internationally, with a market cap of AED3.49 billion.
Operations: Agthia Group PJSC's revenue segments include AED1.52 billion from the Consumer Business Division - Snacks, AED1.02 billion from Consumer Business Division - Protein and FV, AED1.17 billion from Consumer Business Division - Water and Food, and AED1.37 billion from the Agri Business Division - Flour and Animal Feed.
Dividend Yield: 4.5%
Agthia Group PJSC's dividend payments are well-supported by earnings and cash flows, with payout ratios of 52.7% and 33.7%, respectively, indicating sustainability despite a volatile dividend history over the past decade. Recent developments include a proposed 19% increase in dividends for 2024, highlighting commitment to shareholder returns. The company is trading at a discount to its estimated fair value, though its yield of 4.46% is below top-tier market peers in the AE region (6.84%).
Overview: Menora Mivtachim Holdings Ltd, with a market cap of ₪11.95 billion, operates in the insurance and finance sectors in Israel through its subsidiaries.
Operations: Menora Mivtachim Holdings Ltd generates revenue from various segments including Life Insurance and Long Term Savings - Life Insurance (₪6.67 billion), Health Insurance (₪2.29 billion), General Insurance - Automobile Property Insurance (₪1.91 billion), General Insurance - Compulsory Vehicle Insurance (₪1.04 billion), Life Insurance and Long Term Savings - Pension (₪779.05 million), Life Insurance and Long Term Savings - Provident (₪618.68 million), General Insurance - Property Divisions and Others (₪442.18 million), and General Insurance - Other Liabilities Divisions (₪357.03 million).
Dividend Yield: 3.7%
Menora Mivtachim Holdings' dividends are well-covered by earnings and cash flows, with payout ratios of 40.2% and 32%, respectively, suggesting sustainability despite a history of volatility. The company reported significant earnings growth for 2024, enhancing its financial position. Recently added to the FTSE All-World Index, Menora's dividend yield of 3.65% is modest compared to top-tier Israeli payers (6.34%). Its price-to-earnings ratio (11.1x) suggests relative undervaluation in the market.
Overview: Rimoni Industries Ltd. specializes in the design, engineering, and manufacture of molds and precise injection molding for various sectors including medical, automotive, agricultural, high-tech, and consumer industries in Israel with a market cap of ₪373.97 million.
Operations: Rimoni Industries Ltd. generates revenue through its operations in designing and manufacturing molds, as well as precise injection molding and assemblies for the medical, automotive, agricultural, high-tech, and consumer industries in Israel.
Dividend Yield: 6.6%
Rimoni Industries' dividend yield of 6.63% ranks in the top 25% of Israeli payers, yet its dividends have been volatile and are not well-covered by earnings, with a payout ratio at 99.1%. Despite trading at a discount to fair value, recent earnings show a decline in sales to ILS 182.97 million from ILS 213.11 million, impacting dividend sustainability. The cash payout ratio is reasonable at 53.3%, indicating coverage by cash flows but not overall financial stability for dividends.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ADX:AGTHIA TASE:MMHD and TASE:RIMO.
